Entries tagged with “ProPay”.


When a customer decides to return an item, he or she can either return it for a refund or store credit, or they might initiate a chargeback. But what is a chargeback? How is it different than simply returning an item?

A chargeback is when a customer files a claim with his or her bank or credit card provider to recall funds from a merchant, rather than dealing with the merchant directly. A chargeback can be issued for a number of reasons including:

- Technical Error – when there is a technical error with the card or bank

- Clerical Error – when a transaction is billed incorrectly

- Quality Issues – when goods are not received

- Fraudulent Transactions – when a customer claims that he or she did not authorize a purchase or is a victim of identity theft

Chargebacks are mostly in place to protect consumers in cases of error, fraud, or identity theft. It keeps them from being held responsible for purchases they didn’t make, or for incorrectly billed purchases. However, there are some who abuse chargebacks, which could cause your business major problems. So how can you avoid chargebacks?

1. Make sure the billing and shipping information is complete and accurate.

If a customer never receives a purchase because it was shipped to the wrong place, you could not only lose the item and the money you would have received, but you could also lose the customer. You can’t prevent user error, but you can ask if the billing address and the shipping address should match—and they usually do. You can also ask customers to confirm their address before you proceed, to make sure that you are being as accurate as possible. In addition to ensuring address accuracy, you and your customers can track packages to ensure safe, on-time delivery.

2. Make sure credit card information is complete and accurate.

When processing a “card-not-present” transaction—where chargebacks are most likely to occur— do all you can to ensure accurate credit card information. You could use a service that makes sure you can’t authorize an invalid or expired account, reducing your risk of a chargeback. Another important piece of information to obtain is a card’s CVV2 (card verification value) number. A CVV2, sometimes called a CVD (card verification data), CVN (card verification number), or a CSC (card security code), is a three- to four-digit code usually found on the backs of credit cards, under the magnetic strip, next to your signature. Having this code can help ensure that you are accepting payment from the cardholder.

3. Provide excellent customer service.

Providing excellent customer service throughout a customer’s experience with your business could encourage him or her to simply return or exchange a product, rather than initiating a chargeback. It will also encourage your customers to continue their business relationship with you even after a return, rather than terminating it all together.

4. Be straightforward from the beginning.

Making sure that your customers are aware of your return policy is another great way to avoid chargebacks. Whether you offer a return of funds or in-store credit, a return is far easier to deal with than a chargeback. Informing your customers of your return policy at the time of purchase, and making it easy to find later on, can go a long way in preventing chargebacks.

While you probably can’t avoid chargebacks altogether, ensuring accurate customer information, providing excellent customer service, and being straightforward from the beginning can decrease your risk of customers initiating chargebacks.

Every company is different, so why should there only be a few ways to accept payment? Your company needs a payment processor that will fit you, not the other way around. Mobile payment options offer greater diversity and mobility. Here are five types of companies that are ideal for mobile card readers.

1. Multi-Level Marketing Company

Multi-level marketing companies are always on the lookout for ways to help their sales reps. When sales reps have to spend valuable time hand-recording information, they lose selling time. Writing down credit card numbers is not only tedious, but is prone to inaccuracies. When reps later try to place and process an order, but have the wrong credit card number, it takes yet more time to contact the customer, ask for his or her credit card number again, and give the customer the opportunity to reconsider the purchase, potentially resulting in a lost sale. Hand-recorded credit card information is also at a higher risk of being lost or stolen, which presents a serious security risk to customers.

A payment option like ProPay JAK, a mobile card reader that can plug into the audio jack of any smartphone, will make payment processing quick and easy for sales reps. Instead of having to spend all that valuable time recording and then hand-entering credit card information, they can take a few seconds to swipe a card. Then later, they can just match the order with the processed amount, and they’re done! Plus, since credit card information is encrypted when the card is swiped, security issues are virtually eliminated. It’s also a snap to set up recurring payments with ProPay’s EnsureBill service, which securely maintains and updates customer credit card information. And if those aren’t enough reasons to use a mobile payment process, paying the lower “card-present” processing rates, rather than “card-not-present” rates will save money.

2. Food Truck

Food truck owners are always on the lookout for anything that will fit with their mobile business. They can already make delicious dishes on the go, but their busy, always-on-the-go clientele can’t always pay with cash. Even when “Cash Only” signs are clearly posted, food truck employees are constantly asked if they take credit cards. Can they really afford to tell all their potential customers, “Cash Only”? Having to purchase a large and expensive point of sale (POS) system when space and money are both premium assets is a hassle they just don’t need. A mobile card reader that plugs into any smartphone will turn the device into a small and completely mobile POS system. Customer credit card information can be processed and authorized within seconds. Plus, the information will be encrypted, keeping sensitive information secure. For a totally mobile business like a food truck, a totally mobile solution is what’s needed.

3. Boutique

Boutique owners are all about a personalized shopping experience. Their merchandise is as unique and sophisticated as their clientele. Boutique customers look for a level of luxury and joie de vivre that they can only find in a boutique. But, after personally helping customers find that perfect item, making them wait in a long line to check out can be disconcerting. Few things are more impersonal than a busy check-out line with a harried employee manning the register. A mobile payment option that can be used with any smartphone or tablet will extend customers’ personalized shopping experiences right to the point of payment. Instead of helping customers and then sending them off to the checkout, employees can securely accept payment right where they are. A mobile payment processor will mean no more long lines, and will increase that meticulously cultivated sense of personalization and sophistication.

4. Coffee Shops

Whether a coffee shop is cute and cozy, or sleek and modern, they’re all about offering their customers the best. The best coffee is an absolute must, but a positive experience from start to finish is just as important. Some customers may need to get in, get their daily fix, and get out as quickly as possible. But others will want to linger and enjoy the atmosphere. Regardless of whether they stay or go, no one wants to deal with payment hassles. A mobile reader that can attach to the headphone jack of any tablet makes payment a snap. A large user interface lets customers quickly and easily see their total. Plus, the app can be set up to automatically offer a tipping option. It can even offer an email receipt option that will cut down on paper waste for both you and your customer. With such a fast and easy payment method, customers can get the best with none of the hassle.

5. Restaurant

The focus of any restaurant should be on the quality of the food, not the length of the wait. Waiting for a table to become available can drive some customers straight into the arms of the competition. Not only do customers have to wait to get in and start eating, but they also have to wait at the end. Whether they have to get up and pay at the counter, or wait for their server to bring the check and then process payment, eating at a restaurant can sometimes mean more time spent waiting than dining. A lengthy payment process can slow down table turn over and increase waiting time for other customers. A mobile payment processor that can be used with any smartphone or tablet will let servers accept payment, allow customers to leave a tip, and sign, all in one easy process that will eliminate that wasted time where customers are waiting to pay. Customers will get a quick and personal experience, meaning more can be served without feeling rushed out of the door.

Being a small business owner is difficult. The last thing you want to do is take precious time away from running your business to deal with security breaches or overly-complicated payment processes. But finding a payment solution doesn’t have be a source of stress. You can stay focused on the aspects of your business that you are passionate about by choosing ProPay’s ready solutions for accepting and processing payments. ProPay offers an array of affordable options to small businesses. These flexible payment card processing options are designed to meet the specific needs of small businesses so you can live up to the expectations of your customers. Choose the option that works best for your company and appeals to your clients. With so many flexible solutions, you’ll have no trouble finding the right fit.

1. Mobile Payments

These days, customers expect the convenience of being able to swipe and go. With ProPay’s card reader you can be sure that their information is processed securely and accurately. The JAK mobile card reader lets you process cards in real-time. It fits into the audio jack of any iPhone and many Android devices. This neat little gadget enables even the smallest business to jump into processing credit cards with very little investment. This is important because mobile payments are among the most convenient and flexible ways for customers to pay. ProPay JAK enables you to accept and process payments with smartphones, tablets — whatever device works best for you and your customers. Swiped credit card transactions cost 2.6%, making it an affordable option for small businesses. No one can afford to lose money while making money.

2. ACH Processing

Security and convenience are your top priorities when it comes to processing payments. And navigating the ACH network has never been more convenient or more secure. You can process ACH payments, including e-checks, using ProPay’s ProtectPay suite of services to ensure your customer’s financial safety. Confidential information, like bank accounts and routing numbers, are immediately encrypted. Then, sensitive information is replaced with a unique identifier, or token, so there’s no need to for you to ever store it, protecting you and your customers. The result of this secure process is that you don’t get hacked and your customers remain happy.

3. Email Invoice

No one wants to deal with piles of paper anymore. Going paperless is more efficient and has many advantages—especially for small businesses. Most small businesses just don’t have the time or space to file and store actual paper invoices. ProPay’s email invoicing is a great option because it lets you digitize billing information. Another benefit of email invoicing is that it enables your customers to pay online as soon as they receive their invoice, saving steps (and paperwork!) on both ends of the transaction.

4. Phone Web Interface

With ProPay Mobile you can run your business from anywhere using just your phone. It’s a great option to be able to process credit cards and debit cards with your smart phone. You can also use your phone to check your account balance, view transactions in process, check your remaining processing limit, and transfer funds into your bank account. This kind of immediate access is crucial when you’re making important decisions and running your business on the go.

5. Online Terminal

Enable your customers to pay through your website by using ProPay’s online terminal. “Buy Now” and “Donate” buttons are some of the most intuitive and reliable ways to accept payment from your customers. These simple buttons are the ultimate in convenience. Plus, with ProPay you don’t have to spend a lot of time worrying about your customers’ security. Sensitive material is immediately encrypted and assigned a token to ensure customer safety and prevent security breaches. Your transactions will go more smoothly and customers will appreciate the convenience and security your payment processing offers. This is a key component of customer satisfaction, which small businesses rely on.

You’ve worked hard to keep your credit clean, and your business should be rewarded for it. One of the top credit processing trends of 2015 is for payment processing companies, a quickly proliferating industry, to offer rebates and rewards as an enticement to clients with good credit who deserve to cash in on the rebates and rewards. It’s similar to the way personal credit card companies monitor and reward clients with good credit who pay on time. This may come in the form of an initial rebate, or a percentage back at the end of a pay period. Personal credit card offers can suck people in with point systems that dupe some customers into rationalizing overspending because they are earning points or airline miles. There’s not the same risk with payment processing providers since your rebates and rewards are contingent on transactions you were already processing; it’s simply a smart way to capitalize on your system for accepting payments and processing cards. There’s no reason not to take advantage of these offers. With so many options in the payments industry vying for your business, there’s also no reason to compromise. Find a rebate and rewards program that works for you.

Capitalize on Rebates and Rewards

Savvy businesses are capitalizing on opportunities such as rebates and rewards to create new revenue streams.  When you’re looking for a payment processor, choose one that offers rebates and rewards that help you maximize your investment. Use a payment processor that gives you something in return for your business and rewards you for being conscientious about your credit. If you’re managing a business, you know that being scrupulous about your financials is its own reward. Payment processing rebates are just a way to cash in on smart business practices.

Picking the Right Card

It’s essential to do your homework and find the card that’s right for your business. Pick one that’s easy to use and fits your financial style. Check the interest rates and the fees. Make sure you know what you’re getting in return for your business. Do the math—obviously, if the fees are more than the rewards, it’s not a good fit for you. For most businesses, a slow-and-steady approach wins the race. Consistent rewards for paying on time and staying within processing limits are usually the best way to go. Watch out for enticing deals that come with your initial sign-up, but peter out before they provide much of a benefit to you.

ProPay offers a nice rebate in the form of a processing credit, which you can earn after the first 90 days of activating your account. When you sign up for a ProPay account and process $600 in credit card sales in the first 90 days you’ll earn a processing credit worth $29.95. This processing credit covers all of the fees you would normally have paid to ProPay as you process credit cards or transfer funds from your account after receipt of this rebate. It’s a handy way to take care of some of the fees associated with processing cards.

Targeted Reward Programs

As the payment processing arena gets more competitive, expect to see rebate and reward programs becoming more and more specific to customer needs and spending patterns. Strategy& observes the following:

“In the technology sphere, we see opportunities for companies in the payments industry to mine customer data and create analytics that can support increasingly sophisticated merchant-funded rewards programs. These programs are becoming more and more pervasive, offered by an ever-broader assortment of national and local retailers, and their success in an era of ‘big data’ is determined by how well they are integrated with the consumer’s path to purchase. The customer’s location — physical store, mobile computer or desktop, smartphone or tablet — as well as recent purchase history, browsing habits, checkout completion rate, response to marketing impressions, and type of credit card used are among the many data points that payments providers can help retailers evaluate to make rewards programs more relevant to individual consumers. This, in turn, should increase sales per active customer and improve retailer marketing ROI.”

This is a promising trend for business owners who rely on the payments industry for their day-to day credit card processing. As their offers are fine-tuned to meet your needs you’ll best be able to capitalize on a rebate and reward program that recognizes and appreciates your good credit.

Small businesses are always at the risk of failure. While poor cash management is one contributing factor, the real culprit is internal theft. Thus, fraud prevention for small businesses should be a top priority.

Crimes vary from simple cash register skims to sophisticated embezzlement that siphons off capital for months, potentially years.

The Association of Certified Fraud Examiners “Report to the Nations on Occupational Fraud and Abuse: 2014 Global Fraud Survey” indicates that the typical organization loses 5 percent of revenues each year to fraud. The median loss due to embezzlement was $130,000.

The report found that the smaller the business, the more disproportionate the loss. Why? Smaller business tend to shirk on anti-fraud controls. As a consequence, cash and funds sneak out the back door, vital business revenue is stolen, and the business faces tremendous loss.

It’s often the case that by the time fraud is discovered, it’s too late. Forensic accountants arrive long after a significant amount of money has been siphoned off, costing businesses dearly. However, they should still be utilized. According to the report, organizations that implemented proactive fraud prevention measures resulted in losses 60 percent smaller and schemes 50 percent shorter in duration than organizations that did not implement fraud prevention measures.

“Small businesses face a unique set of challenges when it comes to detecting and preventing fraud,” says James D. Ratley, president and CEO of ACFE, adding “Losing … money to employee theft is an expense many small businesses just can’t absorb. You rely on the trust of your employees to make your company successful. But how much trust is too much?”

Considering that small businesses don’t have money to burn, the extra cost of lifetime protection seems like a good investment. There are also ways small businesses can protect themselves, including:

- Conduct background checks on all employees

- Write-out and implement a code of ethics

- Divide bookkeeping and bill payment authority

- Deliver unopened bank statements to top management

- Develop a reporting mechanism or hotline for possible fraud

Keep in mind that the vast majority of fraudsters are first timers, often working with a company for years before they start to embezzle. While a background check won’t predict fraudulent behavior, you should always proactively monitor and understand any risks or warning signs.

To learn more about fraud protection for your business, feel free to contact ProPay. Call 888-227-9856 or email marketing@propay.com.